Nobody can seem to give a concrete reason as to why the price of oil is going up. Each side got out their blame throwers and the blame throwing began. One side says that the demand is just too high, others say that its because of the Oil speculators.
A few weeks ago I was in the gas station and I noticed this very large tank parked in front and construction workers digging a hole in the ground. Now we’ve been using this gas station for the longest time, I think more than 5 years already. When I asked they said that they were putting in a new tank in order to increase their fuel storage capacity.
About two years ago I noticed that two more gasoline stations had setup shop on the road home. This year I saw another one added.
I can’t help but think that all these new gasoline stations setting up because investors see the huge money in selling gasoline because of the weekly oil price hikes plus the old gasoline stations adding new tanks could be what’s causing this increased demand for oil. A lot of gas bought at a low price and sold at a high price due to a price hike translates to a lot of profit.
I’m hoping that it’s a temporary thing and it’s really just a case of panic buying so that it will eventually taper off.
Category: Oil
